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Month Actual Sales (Pairs of reading glasses) January 2021 2800 February 2021 3000 March 2021 5000 April 2021 4000 May 2021 5600 June 2021 8000

Month Actual Sales (Pairs of reading glasses)
January 2021 2800
February 2021 3000
March 2021 5000
April 2021 4000
May 2021 5600
June 2021 8000
July 2021 8000
August 2021 7900
September 2021 6000
October 4050
November 2021 4900
December 2021 5550

Using the sales data of the reading glasses answer the following questions:

4.1 Calculate the three-month-weighted-moving-average monthly forecasts for the period April 2021 - December 2021. Use weights of 0.5, and 0.2 for the most recent and oldest monthly data respectively and 0.3 for the middle month (show all workings).

4.2 Determine the Mean Absolute Deviation (MAD) of the three-month-weighted-moving average monthly forecasts for the April - December 2021 period. (4 marks)

a. The linear regression equation of the sales of reading glasses for the 2021 financial year is given by the expression: y = 201.4x + 4091 (where 'y' denotes monthly sales, and 'x', the number representing the month. For example, x = 1, 2, 3, etc., if the month is January, February, March, etc.). Use the regression equation to determine the Mean Absolute Deviation (MAD) of the regression forecasts for the April - December 2021 period. (5 marks)

b. Which of the two methods is better at forecasting the sales of the reading classes? Explain. (2 marks)

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